Price hike of essentials linked to non-traders getting allotment of DCC shops
Sunday, 10 June 2007
FE Report
The regular basis price hike of essentials in the city has been blamed on time-to-time increase of the amounts of advance as well as rents of a number of Dhaka City Corporation (DCC)-owned retail and wholesale shops.
Sources said more than 70 per cent of the 18,000 wholesale and retail shops housed in 104 DCC markets have been rented out by the original allottees to other traders on higher than the DCC-fixed rent.
When the rents of these shops as well as the amounts of advance are raised, prices of different essential items also go up in the city, the sources mentioned.
They also said the non-trader allottees managed to get allotment of the shops of the DCC markets either by wielding their political muscle power or by bribing a section of unscrupulous officials.
After taking allotment of the shops, they have rented out those to other traders taking Tk 1.0 million (10 lakh) -Tk 4.0 million as advance for each shop.
"Maybe, that's true, but I don't know. You have first drawn my attention to it. I will take up the matter for discussion," Sadek Hossain Khoka, mayor of the DCC, told this FE correspondent, when contacted recently.
A wholesaler in the city's Kawran Bazar kitchen market said: "I took possession of this wholesale shop ten years back by paying Tk 4.0 million (40 lakh) as advance in addition to paying a monthly rent of Tk 15,000.'
The DCC allotted the wholesale and retail shops at Kawran Bazar in 1993 against payment of advance worth Tk 500,000 each and against a monthly rent of Tk 3200 each.
Traders in some other city markets of the DCC, talking to the FE, alleged that most of them were tenants and they paid Tk 1.0 million to Tk 4.0 million as advance.
They said genuine traders were deprived when the allotment was given in the past.
'More than 80 per cent of the total shops at Kawran Bazaar allotted in 1986 by the then Dhaka Improvement Trust (DIT) were either given in political consideration or misusing the quota preserved for the mayor, or taking bribe," a trader further said.
However, in an amendment in 2003, the quota, preserved for the mayor, was cut to 25 per cent from 30 per cent.
Presently, the DCC has ten zonal offices but there is no branch office of the 'Bazaar Circle', Md Fasiullah, executive officer of Kawran Bazar zonal office, told the FE.
'So we cannot monitor the retail prices from our zone,' he added.
When asked about the retail prices, which vary market to market, a wholesaler said: 'The prices vary because of the market-to-market variation of advance payment and rents of the shops.'
'If the government can allot the retail and wholesale shops to genuine traders, the prices of the commodities will automatically decline,' they observed.
A wholesaler said both suppliers and wholesalers are hostage to a section of middlemen, who provide them with capital during the off-season for doing business.
'Instead, the middlemen are taking commission at their will as there is no regulation in this connection,' he mentioned.
Earlier there were some suppliers, who used to bring commodities to Dhaka on their own, but now they have stopped the job as the law-enforcers do not allow them at the wholesale markets.
He said the DCC knows very well who have rented out their wholesale and retail shops as the DCC's permission is needed for doing so.
The regular basis price hike of essentials in the city has been blamed on time-to-time increase of the amounts of advance as well as rents of a number of Dhaka City Corporation (DCC)-owned retail and wholesale shops.
Sources said more than 70 per cent of the 18,000 wholesale and retail shops housed in 104 DCC markets have been rented out by the original allottees to other traders on higher than the DCC-fixed rent.
When the rents of these shops as well as the amounts of advance are raised, prices of different essential items also go up in the city, the sources mentioned.
They also said the non-trader allottees managed to get allotment of the shops of the DCC markets either by wielding their political muscle power or by bribing a section of unscrupulous officials.
After taking allotment of the shops, they have rented out those to other traders taking Tk 1.0 million (10 lakh) -Tk 4.0 million as advance for each shop.
"Maybe, that's true, but I don't know. You have first drawn my attention to it. I will take up the matter for discussion," Sadek Hossain Khoka, mayor of the DCC, told this FE correspondent, when contacted recently.
A wholesaler in the city's Kawran Bazar kitchen market said: "I took possession of this wholesale shop ten years back by paying Tk 4.0 million (40 lakh) as advance in addition to paying a monthly rent of Tk 15,000.'
The DCC allotted the wholesale and retail shops at Kawran Bazar in 1993 against payment of advance worth Tk 500,000 each and against a monthly rent of Tk 3200 each.
Traders in some other city markets of the DCC, talking to the FE, alleged that most of them were tenants and they paid Tk 1.0 million to Tk 4.0 million as advance.
They said genuine traders were deprived when the allotment was given in the past.
'More than 80 per cent of the total shops at Kawran Bazaar allotted in 1986 by the then Dhaka Improvement Trust (DIT) were either given in political consideration or misusing the quota preserved for the mayor, or taking bribe," a trader further said.
However, in an amendment in 2003, the quota, preserved for the mayor, was cut to 25 per cent from 30 per cent.
Presently, the DCC has ten zonal offices but there is no branch office of the 'Bazaar Circle', Md Fasiullah, executive officer of Kawran Bazar zonal office, told the FE.
'So we cannot monitor the retail prices from our zone,' he added.
When asked about the retail prices, which vary market to market, a wholesaler said: 'The prices vary because of the market-to-market variation of advance payment and rents of the shops.'
'If the government can allot the retail and wholesale shops to genuine traders, the prices of the commodities will automatically decline,' they observed.
A wholesaler said both suppliers and wholesalers are hostage to a section of middlemen, who provide them with capital during the off-season for doing business.
'Instead, the middlemen are taking commission at their will as there is no regulation in this connection,' he mentioned.
Earlier there were some suppliers, who used to bring commodities to Dhaka on their own, but now they have stopped the job as the law-enforcers do not allow them at the wholesale markets.
He said the DCC knows very well who have rented out their wholesale and retail shops as the DCC's permission is needed for doing so.